ADVFN Regulatory News (AFN)

31 Mar 2005 07:30

On-Line PLC31 March 2005 Embargoed for release until 7.30a.m. Thursday 31st March 2005 On-line PLC ('On-line' or 'the Company') Unaudited Interim Results for the Six Months Ended 31 December 2004 On-line today announces unaudited interim results for the six months ended 31December 2004. Highlights: • Net profit before tax of £1.645M (2003 : £38K loss ) • Earnings per share of 21.6p (2003 : 0.46p loss) • EBITDA up over 700% to £633K (2003 : £77K ) • Net assets grown nearly fourfold since June 2004 and sevenfold since December 2003 to £2.3M (2003 : £317K) Michael Hodges, On-line's Chairman commented: "These results show the potential that working with our investments cangenerate. We have methodically rebuilt our balance sheet since the crash of 2000and will continue to focus on adding assets to it through corporatetransactions. Our portfolio of investments is now well set for growth and weexpect them to build on their success. The company is in a much strongerposition than it has been in for many years and we are confident this trend willcontinue." For further information, please contact: On-line Plc Michael Hodges, Chairman and Managing Director 020 8532 8918 On-line PLC Chairman's Statement Results I am very pleased to report that our profit for the six months ended 31stDecember 2004 reached £1.645M compared to a loss of £38K for the same periodlast year. Earnings per share have also improved dramatically to 21.6p per sharefrom a loss of 0.46p per share last year. These results have been helped by exceptional gains of £531K on disposal ofinvestments. Whilst classed as exceptional this activity is really part of ourcore business and arose due to deemed disposals of our holdings in ALL IPO PLCand ADVFN PLC where our holdings were diluted. In addition we benefited from ourshare of ADVFN's exceptional gain arising on disposal of subsidiary also inconnection with ALL IPO. Despite the exceptional items our main investment business performed verystrongly and we increased our EBITDA profit by over 700% to £633K compared to£77K last year as can be seen from the table below:- EBITDA - Earnings before interest, tax, 6 months ended 6 months ended Year endeddepreciation, amortisation and exceptional items 31 December 2004 31 December 2003 30 June 2004 £'000 £'000 £'000 Profit / (loss) before tax - per accounts 1,645 (38) 216 Exceptional items - profit on disposal ofinvestments (531) (21) (105) Share of exceptional items of associate (613) - -Share of associate's other Ebitda adjustments 134 126 264Net interest (2) 10 7 EBITDA 633 77 382 Operating Review Since the period-end we have continued to keep our costs to a minimum level andhaving eradicated all bank borrowings are starting to grow a healthy cashbalance by the realisation of our non-core current asset investments. As we announced a few weeks ago, one of our fixed asset investments Smoking GunEntertainment Group Plc in which we own a 20% stake has been admitted to tradingon OFEX. This gives rise to an additional hidden value as this is recorded atcost yet is currently worth £1M. I am also very happy to report that ADVFN PLC, in which we hold a 24.8% stake,has consolidated it's position as Europe's leading financial website and hasjust announced record results with profits after tax of £2.36M, operatingprofits of £113K for the first time, EBITDA that has more than doubled to £638Kand earnings per share of 0.56p. It also announced record user numbers, whichwere up 50% to 450,000 compared to the previous year and it appears poised toprogress much further. As announced in November we successfully restructured Akaei Plc, acquired AllIpo Limited, raised additional funds and changed its name to ALL IPO PLC. Ourholding was diluted to just over 8% but is currently worth over £0.5M and webelieve it has a lot of potential. All IPO will make available, to privateinvestors, shares of companies that are coming to the market and wishing toraise capital via the Internet. Retail investors will be able to participateon-line in IPOs and other fundraisings by applying for new issues of sharesduring an IPO via a fully on-line process. It will allow investors to viewinvestment opportunities, apply for shares, pay and have their investmentsconfirmed in an end-to-end electronic process. Prospects ADVFN seems to be going from strength to strength and appears set to expand at amuch faster rate, ALL IPO has been restructured and refinanced and looks to have a very excitingfuture and Smoking Gun is a very interesting opportunity with a lot of futurepotential of its own. With this portfolio of investments I believe we can lookto the future with great enthusiasm. Michael Hodges Chairman 30th March 2005 On-line PLC Consolidated Profit and Loss Accountfor the six months ended 31 December 2004 Six months ended Six months ended Year ended 31 December 2004 31 December 2003 30 June 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover 16 21 51 Administrative expenses (65) (53) 95 Operating (loss) / profit (49) (32) 146 Share of operating profits / (losses) of associate 30 (41) (28) Gain on investments 518 24 - Exceptional items: profits on disposal of 531 21 105investments Share of exceptional items of associate 613 - - 1,643 (28) 223 Net interest 2 (10) (7) Profit / (loss) on ordinary activities before 1,645 (38) 216taxation Tax on profit / (loss) on ordinary activities - - 2 Profit / (loss) on ordinary activities after 1,645 (38) 218taxation Minority interest 6 4 8 Profit / (loss) retained for the year 1,651 (34) 226 Earnings / (loss) per ordinary share 21.6p (0.46p) 3.3p On-line PLC Consolidated Balance Sheetsat 31 December 2004 31 December 2004 31 December 2003 30 June 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Fixed assets Investments 2,186 737 663 2,186 737 663 Current assetsDebtors 40 24 29Investments 91 71 101Cash at bank and in hand 40 43 8 171 138 138Creditors: amounts falling due withinone year (58) (596) (235) Net current (liabilities)/assets 113 (458) (97) Total assets less current liabilities 2,299 279 566 Minority interests - 38 42 Net assets 2,299 317 608 Capital and ReservesCalled up share capital 3,242 3,241 3,241Share premium account 2,205 2,202 2,202Profit and loss account (3,148) (5,126) (4,835)Shareholders funds 2,299 317 608 On-line PLC Consolidated Cash Flow Statementsfor the six months ended 31 December 2004 Six months ended Six months ended Year ended 31 December 2004 31 December 2003 30 June 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash inflow / (outflow) from operating 28 (124) (230)activities Returns on investment and servicing of financeInterest paid - (10) (11) Taxation - 55 55 Capital expenditureProceeds from sale of fixed asset investments - 57 218 Net cash inflow / (outflow) before financing 28 (22) 32 FinancingIssue of ordinary share capital 4 118 118Share issue costs - (20) (20)Issue of shares to minority - - 17Loan repayments - (57) (102) Net cash inflow from financing 4 41 13 Increase in cash 32 19 45 On-line PLC Statement of Total Recognised Gains and Lossesfor the six months ended 31 December 2004 Six months ended Six months ended Year ended 31 December 2004 31 December 2003 30 June 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Profit / (loss) for the period 1,651 (34) 226Unrealised (loss) / gain on current asset (10) - 30investments Total recognised gains and losses for the period 1,641 (34) 256 On-line PLC Notes to the interim statementfor the six months ended 31 December 2004 1. Earnings / (loss) per ordinary share Six months ended Six months ended Year ended 31 December 2004 31 December 2003 30 June 2004 Profit / (loss) for the period £'000 1,651 (34) 226 Weighted average number of shares '000 7,646 7,477 6,848 Earnings / (loss) per share P 21.6p (0.46p) 3.3p 2. The directors do not recommend the payment of a dividend. 3. The financial information contained in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2004 is extracted from the audited financial statements for that period on which the auditors gave an unqualified report. A copy of those financial statements has been filed with the Registrar of Companies. 4. Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at 642a Lea Bridge Road, Leyton, London, E10 6AP. 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